Rimini Street Announces Fiscal First Quarter 2024 Financial and Operating Results - Middle East News 247
July 25, 2024
PRESS RELEASES

Rimini Street Announces Fiscal First Quarter 2024 Financial and Operating Results

Rimini Street, Inc. (Nasdaq: RMNI), a global provider of end-to-end enterprise software support, products and services, the leading third-party support provider for Oracle and SAP software, and a Salesforce and AWS partner, today announced results for the fiscal first quarter ended March 31, 2024.

Select First Quarter 2024 Financial Highlights

  • Revenue was $106.7 million for the 2024 first quarter, an increase of 1.2% compared to $105.5 million for the same period last year.
  • U.S. revenue was $53.8 million for the 2024 first quarter, an increase of 0.7% compared to $53.4 million for the same period last year.
  • International revenue was $52.9 million for the 2024 first quarter, an increase of 1.6% compared to $52.1 million for the same period last year.
  • Annualized Recurring Revenue was $415.8 million for the 2024 first quarter, an increase of 1.8% compared to $408.3 million for the same period last year.
  • Active Clients as of March 31, 2024 were 3,040, an increase of 1.1% compared to 3,007 Active Clients as of March 31, 2023.
  • Revenue Retention Rate was 89% for the trailing twelve months ended March 31, 2024 and 92% for the comparable period ended March 31, 2023.
  • Subscription revenue was $103.9 million, which accounted for 97.4% of total revenue for the 2024 first quarter, compared to subscription revenue of $102.1 million, which accounted for 96.8% of total revenue for the same period last year.
  • Gross margin was 59.8% for the 2024 first quarter compared to 62.7% for the same period last year.
  • Operating income was $3.4 million for the 2024 first quarter compared to $10.7 million for the same period last year.
  • Non-GAAP Operating Income was $8.8 million for the 2024 first quarter compared to $15.4 million for the same period last year.
  • Net income was $1.3 million for the 2024 first quarter compared to $5.6 million for the same period last year.
  • Non-GAAP Net Income was $6.8 million for the 2024 first quarter compared to $10.4 million for the same period last year.
  • Adjusted EBITDA for the 2024 first quarter was $10.7 million compared to $16.6 million for the same period last year.
  • Basic and diluted earnings per share attributable to common stockholders was $0.01 for the 2024 first quarter compared to $0.06 for the same period last year.
  • Cash and short-term investments of $129.0 million at March 31, 2024 compared to $135.0 million at March 31, 2023.

Subsequent Events

On April 30, 2024, the Company refinanced its Original Credit Facility, which had an outstanding principal balance of $70.9 million, with a new five-year senior secured credit facility (“2024 Credit Facility”) consisting of a $75.0 million term loan and a $35.0 million revolving line of credit. For the term loan, the Company has a choice of interest rates between (a) SOFR and (b) a Base Rate (as defined in the 2024 Credit Facility), in each case plus an applicable margin. The applicable margin is based on the Company’s Consolidated Total Leverage Ratio (as defined in the 2024 Credit Facility) and whether the Company elects SOFR (ranging from 2.75% to 3.5%) or Base Rate (ranging from 1.75% to 2.5%). The revolving line of credit bears interest on the unused portion of the credit line at rates of 25 to 40 basis points, depending on the Company’s Consolidated Total Leverage Ratio. Annual minimum principal payments over the five-year term for the 2024 Credit Facility are 5%, 5%, 7.5%, 7.5%, and 10%, respectively, with the remaining balance due at the end of the original term. Capital One led the financing that includes lenders US Bank and TD Bank.

Subsequent to the quarter and the hiring of our new General Manager for the EMEA Theatre, Martyn Hoogakker, who joined us from Adobe, we announced the hiring of our new Chief Revenue Officer, Steven Hershkowitz, who joined us following extensive sales strategy and leadership experience with HP, Cisco and other companies.

Select First Quarter 2024 Operating Highlights

2024 Business Outlook

The Company is continuing to suspend guidance until there is more clarity around impacts from current litigation activity before the U.S. Federal courts in the Company’s ongoing litigation with Oracle.

Webcast and Conference Call Information

Rimini Street will host a conference call and webcast to discuss the first quarter 2024 results and potentially select second quarter 2024 performance-to-date commentary at 5:00 p.m. Eastern Time / 2:00 p.m. Pacific Time on May 2, 2024. A live webcast of the event will be available on Rimini Street’s Investor Relations site atRimini Street IR events link and directly via the webcast link. Dial-in participants can access the conference call by dialing 1-800-836-8184. A replay of the webcast will be available for one year following the event.

Company’s Use of Non-GAAP Financial Measures

This press release contains certain “non-GAAP financial measures.” Non-GAAP financial measures are not based on a comprehensive set of accounting rules or principles. This non-GAAP information supplements and is not intended to represent a measure of performance in accordance with disclosures required by U.S. generally accepted accounting principles, or GAAP. Non-GAAP financial measures should be considered in addition to, and not as a substitute for or superior to, financial measures determined in accordance with GAAP. A reconciliation of GAAP to non-GAAP results is included in the financial tables within this press release. Presented under the heading “About Non-GAAP Financial Measures and Certain Key Metrics” is a description and explanation of our non-GAAP financial measures.

Reconciliations of the non-GAAP financial measures provided in this press release to their most directly comparable GAAP financial measures are provided in the financial tables included at the end of this press release. An explanation of these measures, why we believe they are meaningful and how they are calculated is also included under the heading “About Non-GAAP Financial Measures and Certain Key Metrics.”

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